Annan launches new bid for Kenya political deal

NAIROBI (Reuters) - Mediator Kofi Annan launched a new bidon Thursday for a political compromise to end Kenya'spost-election crisis, bringing the country's feuding leaders tothe same table for the first time in a month.

Annan and many Kenyans want President Mwai Kibaki andopposition leader Raila Odinga to make tough decisions thatwill lead to a power-sharing agreement after talks betweennegotiators for the two men hit a deadlock on Tuesday.

African Union Chairman and Tanzanian President JakakyaKikwete also attended the talks, extending his stay in Kenyancapital Nairobi by a day in hope of pushing through a deal.

Odinga and Kibaki have come under intense pressure tocompromise over Kibaki's disputed re-election in a December 27vote, which sparked ethnic violence that killed 1,000 peopleand displaced 300,000 more.

The opposition had threatened to hold mass street protestson Thursday, but called them off after meeting Annan, a formerU.N. Secretary-General, on Wednesday.

Kibaki has agreed to create a prime minister post, asdemanded by the opposition, but the two sides are still farapart on how that would be done, what powers a premier wouldhave and how many cabinet jobs Odinga's side will get.

Annan said on Wednesday he believed the two sides couldstrike a deal.

"Issues that divide the parties are bridgeable ... withpolitical will," Annan told reporters. "The solution must befound in the mediation room."

The crisis that exploded after Kibaki was sworn in onDecember 30, amid Odinga's claims the election was rigged,seriously hurt Kenya's reputation as a stable, prosperousnation in a turbulent corner of Africa.

The stalled negotiations also prompted criticism from theUnited States and European Union, in the latest diplomaticpressure to force a rapid resolution of the crisis.

(Additional reporting by Wangui Kanina and Bryson Hull;Writing by Giles Elgood; editing by Bryson Hull)

(For in depth coverage on Reuters Africa Web site:http://africa.reuters.com/elections/kenya/ )

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